Selection of IOCs for offshore exploration yet to be approved

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FHM Humayan Kabir
Offshore exploration for gas and oil is likely to be delayed for a year as approval has not yet been given to the selection of international oil companies (IOCs), top officials said Friday.
"If we fail to sign production sharing contracts (PSCs) with the selected IOCs this month, exploration work in this dry season will be affected," special assistant to the chief adviser M Tamim told the FE Friday.
"Exploration in the offshore in this dry season now depends on the approval of the chief adviser," he said.
M Tamim said: "The chief adviser is examining the evaluation report of the offshore bidding round 2008. So, it may take some time."
State-owned oil, gas and mineral corporation -- Petrobangla -- selected
US energy giant ConocoPhilips and Irish oil company Tullow have been selected by Petrobangla in the offshore bidding round 2008 for exploration of oil and gas in nine potential gas blocks in the Bay of Bengal.
"We had a target of signing the PSCs with the selected two companies by October this year with the aim to begin the exploration work in the offshore within this dry season," energy secretary Mohammad Mohsin told the FE.
He said: "If we fail to sign deals within the period, we will fall behind another year from the expected time of starting the exploration."
A Petrobangla official said it would take some eight years for starting gas or oil production, if found, in the offshore blocks.
A total of seven IOCs submitted tenders for 15 offshore gas blocks expressing their interest to explore hydrocarbon in the Bay of Bengal.
Of them, five were disqualified for their failure to comply with necessary requirements sought by the Petrobangla.
They are Australian giant Santos International, Chinese CNOOC and Longwoods Resources Ltd, Korean National Oil Corporation of South Korea and the United Kingdom's Comtrack Services Ltd.
Before inviting tenders, the Petrobangla demarcated 28 prospective gas blocks in the shallow and deep waters of the Bay of Bengal.
ConocoPhilips has been selected for exploring hydrocarbon in the blocks 10, 11, 12, 15, 16, 17, 20 and 21 in the deep sea and the Irish Tullow for block 5 in the shallow water of the Bay.
As per model PSC, the selected companies will get nine years from the work orders to explore hydrocarbon at their respective blocks.